简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Poorer countries should bolster their financial defences and big bond indexes should consider rule changes, the Financial Stability Board (FSB) said in a report on Tuesday on the vulnerabilties exposed by recent market panics.
The Board, which coordinates financial rules for the G20 group of nations, said the build up of largely dollar-dominated debt by developing countries had caused major stress when the coronavirus pandemic erupted in early 2020.
In some cases, currency slumps and capital outflows were comparable to the 2007-08 global financial crisis, with economies with higher levels of foreign currency debt relative to foreign exchange reserves often especially hard hit.
While emergency measures such as foreign exchange interventions, quantitative easing and currency swap lines from the Fed and other top central banks helped, the FSB said it was looking at preventive steps for the future.
It said there was a need to deepen local currency debt markets and foster a broader domestic investor base.
Big “open-ended” investment funds (OEFs), that saw clients rush to yank money out in the panic, would also be looked at, as could rules around major bond indexes that big money managers often use as guide of what countries debt to buy.
“The FSB is assessing the effectiveness of existing policy recommendations to mitigate liquidity mismatches in OEFs and will report on its findings, including whether these recommendations need to be enhanced, at the November G20 Summit,” it said.
More generally… there may be benefit in exploring how index providers could reduce their mechanistic use of credit ratings, for example by avoiding a rebalancing of indices during periods of stress.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
ATFX upgrades MT4/MT5 servers at Equinix Hong Kong and London, boosting low-latency trading, enhancing global network performance, and optimizing infrastructure.
ICE Futures U.S. recently announced the settlement of charges against StoneX Financial Inc. related to potential violations of the Exchange Rule, which prohibits trade practices such as wash sales and prearranged trades. These charges were connected to an incident that occurred on April 27, 2023, where an employee of StoneX allegedly placed opposing buy and sell orders in the Cocoa Futures spread market.
The Labuan Financial Services Authority (LFSA) has introduced new restrictions on locally regulated forex and contracts for differences (CFDs) brokers, limiting their offerings to currency-related instruments such as spot FX and CFDs on foreign exchange.
The Italian financial services regulator, Consob, has taken decisive action against four new websites that were found to be illegally offering unauthorized financial services.